Free Georgia Real Estate Practice Exam: 52 State Questions

Georgia does not legally recognize any type of legal life estates.

Legal competency age in Georgia to contract is 18 meaning once someone turns 18 they are legally allowed to sign contracts.

The Federal Truth in Lending Act is intended to ensure that credit terms are disclosed in a meaningful way so consumers can compare credit terms more readily and knowledgeably. It requires lenders to give any applicant a disclosure statement.

The Georgia Department of Natural Resources (DNR) is responsible for the implementation of the Georgia Lead Paint Prevention Act of 1994.

“The commission shall have the full power to regulate the issuance of licenses, to revoke or suspend licenses, and to censure licensees.” Per O.C.G.A. 43-40-14. The Commission cannot however transfer a license to another state, give out licenses based on merit and launch investigations on escrow firms.

BRRETA is the Brokerage Relationships in Real Estate Transactions Act. The Act went into effect in Georgia on January 1, 1994. The drafters of BRRETA designed it to help clarify agency relationships between real estate brokers and the consumers of brokers' services.

The Georgia Real Estate Commission is composed of six members, each of whom shall be appointed by the Governor and confirmed by the Senate for a term of five years. Per O.C.G.A. 43-40-2 (A).

The Georgia Real Estate Commission administers and enforces the laws of the state relating to real estate activities. The real estate commission conducts its business in order to protect the public interest. Think of the commission like the executive branch of the federal government. The commission is in charge of enforcing Georgia real estate law, while different parts of the government do other aspects like writing and creating laws.

"Associate broker" means a person who acts on behalf of a real estate broker in performing any act authorized by this chapter to be performed by the broker. Per O.C.G.A. 43-40-1. Meaning they may perform any brokerage act that would typically require a broker's license.

Real estate includes condominiums. Here is the official definition from Georgia Law: “Real estate" means condominiums and leaseholds, as well as any other interest or estate in land, whether corporeal, incorporeal, freehold or non freehold and whether the real estate is situated in this state or elsewhere; and shall also include a mobile home when such mobile home is affixed to land. Per O.C.G.A. 43-40-1.

Any type of Georgia real estate license may remain on inactive status indefinitely as long as it is renewed regularly; meaning the renewal fees must continue to be paid even though the license remains inactive.

Under no circumstances are unlicensed assistants allowed to be paid commissions. Residential, commercial, it does not matter, they are not in any form from brokers.

In Georgia, properties are assessed at a rate of 40%.

The agent can, in fact, practice real estate again when the amount paid on his or her behalf is repaid with interest. It has to be completely paid off otherwise their license remains suspended. Per O.C.G.A. 43-40-22 (6).

The real estate education, research, and recovery fund is a special fund established by the Georgia Real Estate Code to provide reimbursement to persons who are victims of fraud, misrepresentation or deceit committed by real estate licensees during the course of any transaction for which a license is required. The fund is primarily designed to protect consumers, but it does have some other uses as well. Like funding real estate research and education.

Whenever you pay your agency fees a portion of those fees go towards the fund, the goal is for the fund to be $1,000,000.00. If it is lower than that the commission may ask for an additional fee or take money from interests built on investments. Per O.C.G.A. 43-40-22.

In Georgia, licensed activity is defined as anyone who lists, sells, leases, or deals in real estate transactions. If someone does any of those activities without a license it is considered unlicensed activity. In order to do prior tasks they must hold an active real estate license.

All of the following exist in Georgia except Statutory Right of Redemption. Georgia is one of the few states that does not have it. The "right of redemption" is the right of a homeowner to either: stop a foreclosure sale from taking place by paying off the mortgage debt or repurchase the property after a foreclosure sale by paying a specific sum of money within a limited period of time.

In Georgia, a salesperson may not hold a concurrent license with more than one Georgia broker.

All individuals who hold an active real estate license are required to complete 36 hours of Commission approved continuing education during each four (4) year renewal period, including 3 hours on the topic of License Law.

The Georgia Real Estate Commission is composed of six members, each of whom shall be appointed by the Governor and confirmed by the Senate for a term of five years. Five of the members shall be licensees who shall have been residents of this state and actively engaged in the real estate business for five years. The sixth member of the commission shall have no connection with the real estate industry whatsoever but shall have a recognized interest in consumer affairs and consumer protection concerns. Per O.C.G.A. 43-40-2 (A).

All individuals trying to renew their license must hold an active real estate license are required to complete 36 hours of Commission approved continuing education during each four (4) year renewal period, including 3 hours on the topic of License Law.

Georgia allows Joint Tenancy but not Tenancy by the Entirety. Housing discrimination is illegal in Georgia as well as all states. These are the protected classes for Georgia: disability, race, sex, color, national origin, religion, or familial status.

Under Georgia Law, when a license is suspended or revoked, the licensee may appeal for a judicial review. Georgia law says nothing about counter suing and once the license is suspended or revoked the licensee must stop practicing immediately.

In this case, the office manager does not need a real estate license of any type since they are not performing any license related tasks.

A licensee or salesperson for our matter is NOT in violation of Fair Housing if the agent does not accept work outside areas with which the agent is familiar. It is however against the law to deny anyone housing in Georgia because of their: disability, race, sex, color, national origin, religion, or familial status.

The Real Estate Commissioner is a full time employee of the Commission who serves as its chief administrator. Because of the commissioner's oath to faithfully discharge the duties of the office, the commissioner can have no interest in a real estate company or other related business.

It is against the law to deny anyone housing in Georgia because of their: disability, race, sex, color, national origin, religion, or familial status. Age is currently not a protected class under Georgia Fair Housing and in this case being college students is not a protected class.

Georgia law states closings must be conducted by licensed attorneys. So, if a real estate salesperson is also licensed as an attorney then theoretically they could conduct closing.

Georgia contract law requires that a tenant's security deposit must be returned by the landlord within 30 days.

Georgia is NOT a Community Property state. The states that have community property laws are: Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin. Community property is property acquired that is considered to be obtained by mutual effort.

Fidelity bond insurance is required of any Georgia licensee managing community associations that handles more than $60,000.

None, all agents and brokers are required to complete required continuing education.

All of the above are protected classes. It is against the law to deny anyone housing in Georgia because of their: disability, race, sex, color, national origin, religion, or familial status.

The two real estate contracts in Georgia that can be made orally and are enforceable are open listings and leases for one year or less.

Under agency law in Georgia dual agency is legal but only with the consent of all parties to the transaction.

Georgia salespersons may only collect commissions directly from their employing brokers. They cannot receive compensation from their buyer or seller. Any funds given from a buyer or seller must first be given to the broker and then the funds can be distributed appropatly.

Any application for compensation from the Georgia Real Estate Education, Research, and Recovery Fund must be brought within thirty days from the final determination of, or expiration of appeal rights concerning, any judgment. This means once the court makes its decision, the applicable person has thirty days to apply for compensation. Per O.C.G.A. 43-40-22.

Regarding real estate licenses reciprocity, Georgia does with all other states but there is an education requirement permitted to be eligible.

In Georgia borrowers are often required to prepay, at closing, a one year home hazard insurance policy.

Lis Pendens is Latin for "litigation pending." A lis pendens is a written notice that a lawsuit has been filed concerning real estate. In Georgia, when an action of litigation involving real property is filed, constructive notice to future prospective buyers of the property is provided by recording a "lis pendens."

All real estate records in Georgia are maintained by the respective Clerk of Superior Court. Clerks are the official record keepers of the county—they receive and maintain criminal and civil court filings and serve as custodian of county land and property records.

A metes-and-bounds legal description must commence and finish at the same identifiable point. Metes and bounds is a system or method of describing land or real estate.

“Should a broker change the address of the broker's place of business, the broker shall notify the commission, in writing, within 30 days of such change.” Per O.C.G.A. 43-40-19.

“Should the commission pay from the real estate education, research, and recovery fund any amount in settlement of a claim or toward satisfaction of a judgment against a licensee, the license of such licensee shall be automatically revoked.” Per O.C.G.A. 43-40-22.

Under Georgia law there is no “real estate salesperson-buyer relationship.” That relationship is established with the broker as a “real estate broker-buyer relationship .”

GCA stands for The Georgia Condominium Act. There are two condominium statutes in Georgia, but the older of the two, known as the Georgia Apartment Ownership Act (“AOA”), has been replaced by the Georgia Condominium Act. The Act covers all things pertaining to Condominium and Apartment ownership in the state.

Unlike some states, in Georgia there is no state law that dictates what a broker may charge for a commission. The commission is completely negotiable in the listing contract.

Dower and Curtesy was an old law. Oftentimes, back in the day, real property owned by a husband was typically not inherited by the wife nor was the wife's property inherited by her husband. Instead, the property would either go to the children or some other member of the husband or wife's line. Since the late 1800’s the law has been largely abolished, however some states still hold the law true. Connecticut abolished Dower and Courtesy in 1877. Today most states abolished dower and curtesy and generally provide the same benefits regardless of sex.

The two real estate contracts in Georgia that can be made orally and are enforceable are open listings and leases for one year or less.

Georgia is a title theory state with non-judicial foreclosure, meaning no lawsuit needs to be filed by the lender to transfer the deed, as the borrower would have transferred title to the lender at closing.

The max amount is $25,000.00. Regardless of the case. Per O.C.G.A. 43-40-22.